SP Telemedia to acquire Pipe Networks for AUD373 million

11 Nov 2009

Australia’s SP Telemedia, which owns internet service providers (ISPs) TPG and Soul, has announced it will purchase Pipe Networks for AUD373 million (USD346.4 million), ZDNet Australia reports. Following the acquisition, SP Telemedia will gain control of Pipe Networks’ dark fibre network spanning the country’s major business centres, including Sydney, Melbourne and Brisbane, while it will also acquire the company’s recently inaugurated Sydney to Guam international cable, known as PPC-1. Commenting on the purchase, David Teoh, SP Telemedia’s executive chairman, said: ‘PPC-1 gives us a competitive advantage with access to international bandwidth.’

SP Telemedia says it has already acquired 2.8 million of Pipe Network’s shares for AUD6.30 per share, while Pipe’s directors, Bevan Slattery and Stephen Baxter have given SP Telemedia call options over their combined 27% stake in the company; as of 10 November, and prior to exercising the call option, SP Telemedia now owns 19.9% of Pipe’s shares.

Australia, PIPE Networks, Soul